Drought reflects on economic survey: Agriculture growth negativehttps://indianexpress.com/article/india/india-others/drought-reflects-on-economic-survey-agriculture-growth-negative/

Drought reflects on economic survey: Agriculture growth negative

Industry expected to grow at 7 per cent; down from 9.1 per cent estimated.

A day ahead of presentation of the annual budget of the state reeling under a severe drought in 15 districts,the state economic survey tabled in the state legislature painted a grim picture.

The agriculture,infrastructure,and industrial sectors are likely to be hurt.

The annual Economic Survey tabled on tuesday stated that as per advance estimates,the Gross State Domestic Product (GSDP) is expected to grow at 7.1 per cent in 2012-13 against last year’s estimate of 8.5 per cent.

The survey adds that agricultural sector is expected to see a negative growth of 1.4 per cent while agricultural and allied activities will see a negative growth of 2.1 per cent.

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“The rain-fed agricultural sector was affected again this year due about 10 per cent less than normal rainfall,” the survey states.

Industry is expected to grow at 7 per cent as compared to estimates of 9.1 per cent. The services sector is expected to grow at 8.5 per cent,lower than the estimated 10.1 per cent.

The problems seem to be compounded by state debt expected to spiral to Rs 2.53 lakh crore by the end of 2012-13 as against Rs 2.28 lakh crore in 2011-12.

In the last six years,from 2006-07,debt has almost doubled from Rs 1.33 lakh crore.

The survey projects a revenue surplus of Rs 153 crore,with the revenue generation pegged at Rs 1,36,712 crore and revenue expenditure at Rs 1,36,559 crore.

Nearly 50 per cent of the money the state will spend will go into salaries and pension of employees.

The fiscal deficit projected for 2012-13 is Rs 23,066 crore.